B.—4a

454. The cash cost of rations, exclusive of vegetables, &c., supplied from prison farms/ and tobacco, during the years mentioned above is as shown hereunder : —

455. The question of prison labour was considered during last year by the Parliamentary Economy Committee, which recommended that the cost of labour employed on work for any loan account —• e.g., on any construction work for the Government —should not be more than the actual cost to the Prisons Department, and we are informed that this decision has been carried into effect. There seems to be a risk that capital works carried out with prison labour may be loaded with a cost beyond their earning-capacity. Where prison labour is employed on works financed from loan-money it is unwise to recoup the Prisons Department for more than the estimated amount upon which the asset concerned can earn revenue. In other words, we do not consider that even the actual cost of the labour to the Prisons Department should be recouped without regard to the possibility of the asset being fully revenue producing. This is another instance where loan-money may be used to meet ordinary revenue expenditure. It must be the duty of the State to provide the cost of the establishment and maintenance of prisons, and this should assuredly be a charge upon taxation. 456. We do not propose to review the items in this vote in detail, but would remark that the Prisons Department some years ago was allied with that of Justice under one permanent head, and on the retirement of that officer the Prisons Department again became a separate entity. There is no good reason for two separate Departments and two controlling officers a.nd administrative staffs. We recommend that the two Departments be amalgamated at the earliest possible date, and on such amalgamation the Head Office staffs should be effectively merged. This was not the case under the previous administration referred to, and thus it was comparatively easy to again create two separate Departments. 457. The merging of the administrative staffs, records, &c., should effectively close the door to the creation of two Departments at a later date. It is obvious that considerable administrative economies can be effected in this way. VOTE-CROWN LAW OFFICE. 458. There is very little scope for economy in this vote. The expenditure in 1914-15 and 1930-31 is shown hereunder : —

459. It is not the practice of this Office to charge for services rendered to all trading Departments. We consider that it should be a basic principle in the Service that all work performed for trading Departments by any Department of State should be charged for. We accordingly recommend that a charge be made for all legal work carried out by the Crown Law Office for such Departments as the Post and Telegraph Department, New Zealand Railways, State Coal-mines Branch, &c. 460. We are unable to estimate what saving to the vote of the Crown Law Office would result from this procedure. VOTE—POLICE DEPARTMENT. 461. The net expenditure of this Department has increased from £234,674 in 1914-15 to £456,672 in 1930-31. This increase of £221,998 is chiefly due to increased staff and increased rate of pay of the police. 462. In 1914-15 the staff numbered 980, and in 1930-31 it had risen to 1,205. This, however, is a normal increase corresponding to the increase in the population of the Dominion.

4*

51

! Cost per Head. 1915-16. 1917-18. 1924 r 25. 1929-30. 1930-31. 1931-32. . . . . - _ - . Per day .. .. .. 9fd. 10£d. 7Jd. 7d. 5|d. Per annum .. .. £14-98 £16-49 £14-93 £10-89 £10-63 £8-5

1914-15. 1930-31. Salaries. Other Charges. I Total. Salaries. Other Charges. Total. - j I £ £ £ J £ £ £ 5,506 246 5,752 j 6,257 _ 552 6,809 Less credits .. 1,082 £5,727